On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate
Question:
On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. (Assume a 360-day year is used for interest calculations.) Hide a. Journalize the entries for October 1 and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Oct. 1 Nov. 30 Hide b. Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Oct. 1 Nov. 30
a. Journalize the entries for October 1 and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
b. Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Expert Answer:
Solution a Interest expense Amount Discount rate No of days360 90000 6 60360 900 Dat... View the full answer
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
